Joburg Market a food chain frenzy

In the early morning darkness it soon becomes clear that every vehicle is taking the turnoff marked "Joburg Market".

The fresh-produce market - the destination for farmers, shopkeepers, street traders, restaurateurs, housewives and others - roars and rushes at you like a lion protecting a kill.

The first sign of the organised chaos ahead comes in the parking lot and loading area, where cars speed past each other in the gloom.

Time, they say, is money, and while the rest of Johannesburg sleeps soundly, the early morning visit to the market is the start of the business day for many people. From here they will rush off to open their shops and stalls, and they haven't a minute to waste.

That much was made clear to me as I carefully avoided getting killed in the parking area or maimed by speeding forklift trucks in and around the halls where the produce changes hands.

I tried to stop a man for a chat. "Do you have a minute?" I asked. "Sorry, no I don't," he replied, hurrying on his way, breaking stride just briefly to thoughtfully squeeze some tomatoes in a box.

The scene is one of adrenaline-fuelled energy as huge farm trucks are unloaded at speed, urgent deals are made with produce agents and vehicles - cars, bakkies, vans, small trucks - are piled high with potatoes, green peppers, tomatoes, bananas, onions, string beans, chillies, cabbages, lettuces, pears and apples. Some leave with just one or two boxes, carrying their purchase in their hands or balancing it on their heads.

About 10000 people on average visit Joburg Market - formerly Johannesburg Fresh Produce Market - every day.

Everybody is there: housewives in aprons, businessmen of every description jabbing their forefingers at calculators, street hawkers clutching a few hundred rand, farmers in two-tone shirts, smoking beside their trucks as they are unloaded.

One man tells me: "I spend about R400 here every day on fruit and veg. Then I sell it for about R800. That's my job."

Providing such opportunities is a role that the market takes seriously. "The location is just 5km from the city centre and many street hawkers walk here," says Thomas Mawasha, head of marketing and communications.

The market educates emerging farmers about aspects such as packaging. New banana growers in Limpopo, for instance, are provided with generically printed "Produce of Limpopo" boxes.

"Many of them don't realise that people don't want to buy produce in crates, for example. We charge them for the boxes but only after their produce has been sold," says Mawasha.

Supplied by about 5000 farmers, it is the biggest fresh produce market in the world by volume, he says.

"The Rungis market in Paris is bigger, but it is not only a fresh produce market. It also sells poultry and fish, and it has hotels and rents out cars and so on."

Joburg Market moves about 1Mt of produce every year, with buyers coming from as far away as Zambia. By comparison, Rungis moves 823000t.

Elvis, a worker loading a truck taking produce to Durban, says he makes the return trip every day.

"It's not uncommon," says Mawasha. "Of the 20 municipal markets in SA, Joburg Market has a 38% share of the fresh-produce market and is by far the biggest. As a retailer you will not find anywhere else in the country the variety, quality or price for produce that you get here.

"In addition, Johannesburg is the most accessible city in SA, which is part of the reason for its popularity."

The Tshwane market, at half the size, is the country's second-biggest, followed by Cape Town with 12% market share.

Joburg Market generates turnover of R3,8bn/year - or R17m/day - of which the city gets 5%.

A vital link in the chain between farms and consumers is the agents, who are contracted by farmers to sell their produce. They earn commission of 7,5% on gross. It leaves 87,5% for the farmers.

Fatima Calisto of Marco Fresh Produce Agents has been an agent at the market for 27 years. She represents about 10 farmers.

"We try to get the best prices for the farmer, because it obviously benefits us too. We also keep the farmers informed all the time about prices and how their produce is selling, so they have an idea of what to expect."

Her son, Paulo, offers an observation on the battle for margins: "Buyers here will fight over a rand on the price for a box. Fist fights. I've seen it."

Mawasha says there are 14 market agents, employing a total of about 100 salesmen.

"Farmers often contract more than one agent, to check how good they are, and who does the best for them. The agents depend entirely on the farmer. Without him there is nothing to sell and he can drop them if they don't perform.

"It is the farmer who takes the risk until his produce is sold, but at least he knows that there is on average less than 1% wastage at Joburg Market."

He says the competition among agents borders on cut-throat, with competitors sometimes calling up farmers to discredit others and claiming that they are able to secure better prices.

The market space for agents is provided free, says Mawasha.

"We are not in business or in cahoots with anyone and we are not driven by profit," he says. "The facility is owned by taxpayers. People often don't realise this."

It employs about 250 people directly, with agents providing another 1000 jobs. About 100 porters - who fetch and carry for sellers and buyers - work there on a selfemployed basis.

He says the market was established to ensure the city's food security and price transparency.

Its origins go back to 1893 to Market Square in Market Street in the city centre. It moved to Newtown in 1913 - the site is now occupied by the Market Theatre - and, when that became too small, it moved to its present location in 1974. Corporatisation, with the City of Joburg as sole shareholder, took place in 2000 and a major upgrade was carried out in 2005.

It was the first produce market in Africa to offer global sales online when it started this service in 2009.

An in-house information technology system tracks and quantifies "to the last kilogram" on an hourly and daily basis the type of product, grade, price and volumes available and sold.

Sales at the market are strictly cash, though a card system has been introduced to lessen risk. Buyers pay R50 - refundable - for a card and load money onto it at the market. They can then spend up to the amount loaded.

Mawasha says the card system also enables the almost immediate transfer of funds to the bank accounts of farmers, which improves their cash flow.

Source: Financial Mail